Network operator AusNet Services has canvassed the imposition of hefty connection fees – in the “hundreds of dollars” – for rooftop solar installations in Victoria if they cause the need for grid upgrades.

The proposal has raised eyebrows and concerns in some quarters, because AusNet’s networks have a relatively low penetration of rooftop solar (mid to high teens in terms of per cent) compared to areas in South Australia and Queensland (more than 30 per cent) – so it should have additional capacity.

This, however, will likely to change should the state Labor government be returned and continue with its policy of providing generous rebates that aim to install 2.6GW of rooftop solar on another 650,000 homes in the state.

Currently, Victoria has around 1.4GW of rooftop solar, on about 300,000 homes.

AusNet says networks will be upgraded to cater for the extra rooftop solar, where there is an economic case to do so.

Giles Parkinson is founder and editor of Renew Economy, and is also the founder of One Step Off The Grid and founder/editor of The Driven. Giles has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.

Giles Parkinson is founder and editor of Renew Economy, and is also the founder of One Step Off The Grid and founder/editor of The Driven. Giles has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.